I would not characterize the rise in Spanish banking deposits from August to September as good news, but it is not bad news either.
Spain had been undergoing a “bank jog” for quite some time peaking in August and July. The reason the outflow of deposits was so great in those summer months is because they coincide with vacation season. While Spaniards were vacationing in northern core countries and the U.K., they would take extra euros with them and open bank accounts in these safe havens.
Now that vacation season is over, new account activity is past its peak, and deposits have leveled off for now. While they did increase in September, they did so at a barely perceptible rate. An increase from €1.492tr to €1.505 is less than 1%.
The Greeks are in the same boat. Their bank deposits increase €1.4bn to €160.1bn, which is also less than 1%.
If this continues for a few months, then we will have a different story. For now, the eurozone remains highly unstable.